Cattle Report: Futures Rally as Market Sentiment Strengthens

Live cattle and feeder cattle futures extended gains on Monday, signaling continued bullish momentum in the beef complex. The cattle report showed strength across multiple fronts, with live cattle futures climbing to $1.02 per pound, up 62 cents for the session. Feeder cattle futures proved even more robust, with front-month contracts advancing 55 to 85 cents in the same timeframe.

Cash Markets Demonstrate Underlying Strength

Underlying cash trade provided solid support for the futures rally during the week. Most regions traded around $230 per cwt, while northern sales pushed higher at $234, indicating regional supply tightness. The feeder cattle market reflected this pattern, with steers commanding $4-8 premiums and heifers steady to up $3. However, calf prices faced headwinds, declining $5-10 for steers and $10-20 for heifers.

The CME Feeder Cattle Index advanced 60 cents to $347.37 on December 12, providing additional confirmation of strengthening fundamentals. Weekly activity at the Oklahoma City feeder auction included 8,500 head—above the prior week’s volume—suggesting sustained market interest in feeder inventory.

Positioning Shifts in Trader Data

The Commitment of Traders report for the week ending November 25 revealed notable positioning adjustments. Managed money reduced their net long exposure by 4,420 contracts to 92,911 contracts, marking the smallest positioning since October 2024. This reduction suggests money managers rotating positions or taking profits on prior gains. In the feeder cattle derivatives complex, speculative traders trimmed net longs by 1,382 contracts to 16,048 contracts, reflecting a similar cautious undertone.

Export Activity Accelerates

Beef export data painted a more constructive picture. Sales totaled 17,148 MT for 2025 delivery during the week ending November 20—marking a 7-week high for forward bookings—with an additional 5,398 MT for 2026 commitments. Physical shipments reached 19,789 MT, the largest volume since January, demonstrating robust global demand absorption for U.S. beef products.

Pricing and Processing Trends

USDA Wholesale Boxed Beef prices climbed in the Monday afternoon update, with Choice boxes advancing $2.02 to $359.46 per cwt and Select boxes rising $3.08 to $347.30. The Choice/Select spread compressed to $12.16, suggesting more balanced supply between grades. Federally inspected slaughter totaled 110,000 head on Monday, running 5,000 head below the prior Monday and nearly 7,000 head lower than the year-ago comparison.

Contract Settlement Summary

The cattle report’s contract closings reinforced the bullish momentum:

• Dec 25 Live Cattle: $230.825, +$1.025
• Feb 26 Live Cattle: $230.550, +$1.000
• Apr 26 Live Cattle: $230.025, +$0.625
• Jan 26 Feeder Cattle: $339.925, +$0.825
• Mar 26 Feeder Cattle: $334.850, +$0.775
• Apr 26 Feeder Cattle: $333.775, +$0.550

The consistent gains across contract months suggest sustained confidence in the cattle market’s direction, supported by a combination of cash strength, export demand, and modest positioning adjustments in the futures complex.